By AJMN News Desk
Bangkok | October 26, 2025

 A Reset in Global Trade Relations

On the first day of President Donald Trump’s renewed Asia diplomacy tour, the United States and China signaled a rare moment of cooperation — announcing steps to ease trade tensions that have strained global markets for years.

Following high-level discussions in Bangkok, both governments confirmed a temporary 90-day tariff freeze and a framework for expanded negotiations aimed at rebuilding economic trust.

The announcement marks the first major de-escalation since trade hostilities reignited earlier this year, and it comes as Trump seeks to reassert U.S. influence in Asia amid rising competition from Beijing.

 Talks Open on a Constructive Note

U.S. Treasury Secretary John Bessent described the initial talks as “productive,” saying both sides agreed to reassess tariffs and restore market access for key industries such as agriculture, semiconductors, and green energy.

“This is a step toward restoring balance in global trade,” Bessent told reporters. “President Trump made clear that cooperation, not confrontation, benefits both nations and the global economy.”

Chinese Vice Premier Liu He, representing Beijing’s delegation, echoed that sentiment, calling the talks “a positive restart built on mutual respect.”

While no long-term deal was signed, analysts view the tariff pause as a confidence-building gesture, potentially paving the way for a comprehensive trade accord in 2026.

Economic and Market Reactions

Global markets responded immediately to the news.

• The Dow Jones Industrial Average climbed more than 200 points in early trading.

• The Shanghai Composite Index and Nikkei 225 both posted gains, reflecting renewed investor optimism.

Economists say the development could stabilize supply chains disrupted by years of tariff uncertainty.

“Even a short-term truce can ease inflationary pressures and restore predictability,” said Dr. Maya Tan, a trade analyst at the Asia-Pacific Policy Institute. “It shows that dialogue is once again possible.”

 Diplomacy in Motion: Trump’s Asia Tour

Trump’s Asia tour his first since returning to the White House  includes stops in Thailand, South Korea, and Japan, with private meetings scheduled alongside regional summits.

White House officials say the goal is to “redefine U.S. engagement in Asia” by reinforcing trade partnerships, countering Chinese influence, and promoting energy and infrastructure investments.

In Bangkok, Trump framed the easing of tensions as a diplomatic success, telling reporters:

“We’re looking for fairness, not friction. This is the start of a beautiful phase of cooperation.”

Observers note that Trump’s renewed diplomacy comes at a sensitive moment, as both Washington and Beijing face slowing economic growth and public pressure to de-escalate trade conflicts.

 Challenges Ahead

Despite the optimistic tone, experts warn that fundamental disagreements remain unresolved  including technology export controls, data privacy, and industrial subsidies.

“A temporary truce doesn’t equal a permanent solution,” said Professor Li Wen, an international trade scholar at Tsinghua University. “The political will is there, but structural issues will take months, if not years, to settle.”

Negotiators are expected to reconvene in Geneva next month to formalize working groups and outline the next phase of talks.

 A Step Toward Stability

For now, the move offers relief to businesses and consumers worldwide.
The trade thaw could help lower costs on imported goods, revive stalled investments, and ease pressure on global inflation  a rare moment of optimism in a volatile economic landscape.

If sustained, this cooperation could mark the beginning of a “trade reset” between the world’s two largest economies and a defining achievement of Trump’s 2025 Asia diplomacy tour.